Niti Aayog Virmani promotes Chinese investment in Indian manufacturing

06 Aug 2024 CW Team

Virmani explained that if India is going to import goods from China for the next decade or more, it would be more beneficial to have Chinese companies establish operations in India and produce these goods domestically. This strategy, he noted, would align with the broader economic trade-offs.

With the US and Europe moving away from sourcing directly from China, Virmani argued that having Chinese companies invest in India could help the country tap into these markets more effectively. The Economic Survey emphasised that focusing on FDI rather than solely relying on trade could be a promising approach for boosting India?s exports, similar to strategies used by East Asian economies.

China is currently India's largest trading partner, with bilateral trade amounting to $118.4 billion in the fiscal year 2023-24. However, India has seen minimal FDI from China, which holds only a 0.37% share of the total FDI inflow. Tensions between the two nations, particularly after the Galwan Valley clash in June 2020, have impacted their economic relations. Despite these tensions, trade has continued to grow, with India's exports to China rising by 8.7% to $16.67 billion last fiscal year, while imports increased to $101.7 billion, widening the trade deficit to $85 billion.

Virmani believes that focusing on Chinese investment could be more advantageous for India than relying on imports, helping the country to better integrate into global supply chains and reduce its trade deficit.

(ET)

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

Arvind Virmani, a member of Niti Aayog, suggested that India should encourage Chinese firms to invest and manufacture goods locally rather than continuing to import them. His comments followed a pitch from the pre-budget Economic Survey on July 22, which proposed attracting foreign direct investment (FDI) from China to boost local manufacturing and enhance the export market. Virmani explained that if India is going to import goods from China for the next decade or more, it would be more beneficial to have Chinese companies establish operations in India and produce these goods domestically. This strategy, he noted, would align with the broader economic trade-offs. With the US and Europe moving away from sourcing directly from China, Virmani argued that having Chinese companies invest in India could help the country tap into these markets more effectively. The Economic Survey emphasised that focusing on FDI rather than solely relying on trade could be a promising approach for boosting India?s exports, similar to strategies used by East Asian economies. China is currently India's largest trading partner, with bilateral trade amounting to $118.4 billion in the fiscal year 2023-24. However, India has seen minimal FDI from China, which holds only a 0.37% share of the total FDI inflow. Tensions between the two nations, particularly after the Galwan Valley clash in June 2020, have impacted their economic relations. Despite these tensions, trade has continued to grow, with India's exports to China rising by 8.7% to $16.67 billion last fiscal year, while imports increased to $101.7 billion, widening the trade deficit to $85 billion. Virmani believes that focusing on Chinese investment could be more advantageous for India than relying on imports, helping the country to better integrate into global supply chains and reduce its trade deficit. (ET)

Products

03 Jul 2026

AFC Furniture Targets Pune and Nagpur Expansion

AFC Furniture Solutions has announced its expansion into Maharashtra's key commercial hubs, targeting Pune's technology corridors and Nagpur's Multi-modal International Cargo Hub and Airport (MIHAN) as part of its western India growth strategy.The company expects western India to contribute 25–30 per cent of its revenue, supported by demand from over 900 companies across Hinjewadi's Special Economic Zone (SEZ) and non-SEZ locations, as well as businesses in the MIHAN region. According to Cushman & Wakefield, Global Capability Centres (GCCs) accounted for 69 per cent of Pune's office leas..

Infrastructure Transport

03 Jul 2026

PM Modi to Open Jodhpur Airport Terminal and Pachpadra Refinery

Prime Minister Narendra Modi will visit Jodhpur and Balotra in Rajasthan on July four to inaugurate the HPCL Rajasthan Oil Refinery and the newly built terminal of Jodhpur airport, the state Chief Minister Bhajan Lal Sharma said. The announcement said the Prime Minister will arrive from New Delhi to dedicate the ultra-modern airport terminal and then proceed to Pachpadra-Balotra for the refinery inauguration. Local authorities have begun operational preparations to ensure smooth conduct of the functions and VVIP movement. The project at Pachpadra is valued at Rs 794.59 billion (Rs 794,590 mn),..

Infrastructure Urban

03 Jul 2026

Majhi Launches WEP And MSME Clusters To Boost Growth

Chief minister Mohan Charan Majhi launched the Women Entrepreneurship Platform Odisha chapter and inaugurated MSME infrastructure projects during the Udyami Odisha MSME Programme on International MSME Day. The chapter, developed with support from NITI Aayog, will integrate Mission Shakti, the MSME department, Startup Odisha, banks and industry associations into a single-window ecosystem to improve access to finance, markets, mentorship and skills for women entrepreneurs. A one-year action plan was unveiled to accelerate manufacturing and boost women-led enterprises. He said the vision is to ma..